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tv   MONEY With Melissa Francis  FOX Business  March 2, 2013 12:00am-1:00am EST

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understand. the thing is, to your point, i just don't know when the politicians will say that it is my bad. >> we are a forgiving country. neil: you will get a great deal of support. that is not to make a fool out of you. but i see that it is very interesting. >> it is going back to money and politics. there are special interest groups and.
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>> i a very honest. but i cannot vote in america yet. >> i will make sure that you don't. [laughter] >> i'm kidding. >> the final line, we are not making a lot of progress. >> we are not. the day of reckoning will come. maybe it is the 2014 midterm elections were the president and he can stall and delay in the american people will be hurt again. >> these guys work for us. we hired them. neil: we work for the people and we have to be accountable as well. [talking over each other] [talking over each other] >> meanwhile,
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melissa: i am melissa francis, and here is what is "money" tonight. one but that letter to annual shareholders is sending shockwaves through the market. how you can catch on on your latest predictions. we are all over it. and congress is miserably trying to solve our debt crisis. the head of tivo says that ceos can resolve this disaster once and for all. he joins us now fox business exclusive. and going out with guns blazing. group on ceo gives the most shocking revelation about. a tax marketing expert could not disagree with me more. even when they say it is not, it is always about "money".
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melissa: our top story tonight is one but that's speech. his annual letter to shareholders and the berkshire hathaway chairman says what more is the problem with inestments? fox business has nicole petallides on the floor of the new york stock exchange. what a treat. jack, i will stt the sincere onset. one of the things that he said is that he was disappointed by the lack of a major deal. he said that he came away empty handed after pursuing some elephants. >> it was really a big change. you remember, he wrote an op-ed in "the new york times" and said that stocks are a great deal,
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i'm buying american and you wish it to. what we have had a tremendous boost in the stock market, and now they are running out of things to buy and that says something about how ordinary investors are having trouble finding good deals right now. melissa: spencer, do you interpret it the same way? >> this is like christmas for investors. we get to open up this envelope and have all these golden nugget it's really exciting to get in his mind. he is very interesting to find large acquisitions. one of the things he has done is being built out of a tough situation and the preferred shares in stks and we are really just waiting for them to strike the next thing. his advantageshat he buys in cash come he really stresses
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that the world is awash in cheap money. it is just not as attractive. melissa: what was the biggest thing i got the floor attention reign. >> they are all over it, still looking to make a huge acquisitions. he is thinking huge. the other thing is that he was saying that it's likely that he will increase in the future state and companies and everyone wants to invest. american express, coca-cola, ibm, and wells fargo. that is interesting because that is what is going on. melissa: what do you guys think? >> you cannot go wrong with companies like that. it is not the case. he is negotiating for these preferd stock deals where he gets 9% dividend before anything else happens.
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he can do that when you can backup the money truck to entice your own deals. at the ordinary person can't find those deals. there are a few things out there, a few stocks that ordinary people can still buy. melissa: that is a great point. people say that if you invest like him, , it's not necessarila great thing. >> that is exactly right. you can look at the stock itself and you can see how well that has done in the first two months. it is almost up 15%. rather than trying to bind to the main thing, why nt get into berkshire hathaway on a pullback and let them do the work for you. melissa: i must admit that i am still combing through this. did you see any clues about health? >> it sounds like he and charlie are ready to go.
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it seems so opportunistic at this time. very conscientious, loving america, it is about investing in the stock over the last 52 weeks is up almost 30%. it is not a bad idea. melissa: okay, we are going to leave it there. thank you so much. melissa: today is march 1, sequestered it. the president has until 11:59 p.m. to implement the cuts. you might not think that the lawmakers will be furiously working to avoid these dreaded cuts, but actually they took the day off. but we did find one congressman that is still in town. joining me is a republican from indiana. thank you so much for joining us. >> it's good to be with you,
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melissa. melissa: what you think about the message? you look at the bottom of the screen and it is fast approaching. >> this is really unfortunate. it has been around for more than a year. the house republicans have actually passed two separate bills to deal with these across-the-board cuts. with the way the the legislative process works, the timeline really runs out and has ran out the day before. i think it is unfortunate. the president should really have been leading on this a long time ago. we had already delayed the sequestered when attacks could deal took place. we have already extended it already. melissa: what you make of this? he announcedhat is one of the continuing resolution has to do with the spinning concepts come he would agree to sign it.
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some people think that is a condition of signing it. what do you think? >> the president continues to go around the country, talking about tax increases. he just got a tax increase on new year's day. americans saw 2% more glut of their tax to washington dc. the president continues to talk about tax increases and i don't know exactly how sincere he is about that. at some point he's going to see that we are cutting 2 cents out of every dollar in your. melissa: the continuing resolution, does that mean that there is more revenue? >> in a sense, he would be agreeing to that. again, this is 2 cents out of every dollar that washington spends and at some point, he is going to have to be realistic and realize that we cannot be irresponsible with taxpayer
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dollars. as we have gone in through the budgeting process, they haven't passed a budget four years. this is part of the time that has come when the cuts are going to happen. it is just not the case. melissa: it doesn't seem like the public is nervous about going over the fiscal cliff this time around. the recent poll said how wi the country get the budget deficit under control? 57% said that they think that it will only happen with automatic cuts. only 29% say that they think that lawmakers can actually get it done. how do you interpret those numbers? >> i think that they get it. the super committee backing of the super committee. i think they continue to govern from crisis to crisis. the president has unable to
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catch that big deal when he had an opportunity in 2011. muddling through crisis to crisis. we really need leadership. they are having these brief conversations every once in while. melissa: what happens next? looking people at home expect? >> we are going to see meat inspectors laid off, that's up to the president, but it doesn't have to happen. it doesn't have to allow for traffic controllers to go home or to be furloughed. there are plenty of waysn washington. melissa: we on't need planes to fall out of the sky. thank you so much, congressman.
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let's turn to the market moment. u.s. factory data helped reverse a 116.5 slide from the dow jones. major industries through their all-time highs, the dow jones has a fresh five-year high after climbing 35 points and it is now 75 points away from the all-time high. coming up next, enough of these guys. it is pretty clear leaders in washington cannot solve the debt crisis. the ceo of tivo says that it is time that the chief executives give it a try. we have a fox business exclusive and how hard the housing market will get hit with the sequestered. it is preparing for the worst. more "money" is coming up my mother made the best toffee in the world.
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it's delicious. so now we've turneher toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to today and make your business dream a reality. at we put the law on your side.
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melissa: here we go again, the president and congressional leaders come up empty-handed after their 11th hour meeting to avoid the sequeered.
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finding how to cut $85 billion bill he can be that hard, given that it is only about 2% of the $3.6 trillion federal budget. my next guest says that he has the solution. how washington can actually resolve the debt crisis. joining me now in a fox business exclusive is the ceo of tivo. what can the ceos do that these goofballs in washington couldn't? >> i am not sure. it is the answer, i'm not sure if they have the exact answer here, but it's certainly worth a try. a number of ceos have come forward as part of this effort. for the first time, will bunch of us have said that we are not weighing in on one political side or the other. but we have to come to a compromise here is we have to come up with a fiscal plan and long-term debt reduction. >> it is all about compromise and negotiation and getting to a solution. when you look at these guys, they are not trying to get to a solution.
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that's what it looks like. >> i think both sides feel that there is political benefits that they each get for having missed fall apart and not do anything. i do think that something will come about this. either a public outcry or we will get to the continuing resolution issue and there will be a potential government shutdown and that will force a conversation as opposed to the no discussion thing going on now. the question is once there is a discussion, how do you make this constructive and something that will come from that. businesses often go to a mediator when they get into a really tough argument or litigation and they look for a third party or a few people to come in and sit down and say, maybe you can help us work this out. melissa: do you think they really get to that point? >> i think that they will where it is clear that something has to be resolved. both sides have issues of giving to the other.
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melissa: like my children. >> the political dynamic is such, particularly among house republicans who were elected. they put the position forward that we are not giving anything here. we are not going to be the guys we look to as part of a process. i am not casting its one side or another, but it's dynamic. if you have that kind of issue, i think it could be third parties this is what we need to come up with growth strategies.
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melissa: people talk about serious entitlement reform or grand bargaining. both sides have to want that. word is a very small group. are you convinced that anyone wants to do that? >> i think that they could hide from medicare benefits. >> everybody recognizes that something needs to be done. everyone is worrying about their political positions. the guys taking the heat come of giving both sides cver, standing up for something that may not be the situation. melissa:
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>> they generally enter the political process to fund a particular candidate. or because they are our ceos and i have a megaphone and they can weigh in. >> what about wanting a better america? >> i don't think that is why they have indicated the political arena. each side picking a few ceos to put in the room there, to at as mediators, it can give both sides cover and we get to the point that the sides are going to talk, that we get to a much more practical set of solutions. >> it sounds like a great idea. tom rogers, inc. is a much for coming on. okay, time to check the fuel gauge report. a critical environmental
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assessment for the keystone xl pipeline. the report says the pipeline would not result in any significant or adverse environmental effects. under the current timetable, a final decision through july or august. and oil futures tumbling to the lowest level this year. record high unemployment in the eu, helped fueling the decline. saudi arabia and iraq are largely behind it. crude output is 30.3 million barrels per day. the housing market has come back swinging. one of t biggest names says the sequestered could devastate the games. we have a ceo joining us next.
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and saving the city from financial ruin. a former mayor of detroit said yes, it can happen. can you ever have too much "money"?
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melissa: the reality of the huge budget cuts and how they will head home, starting with whether they a going to flip the housing market gains. our power panel now, former congressman martin russo. we have a guru, dottie herman, and dan hunter from our fox news studios. quite a panel that we have here.
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let me start with you. you think that there could be real damage to the housing market based on this. why is that? >> i have to tell you that i am a little bit skeptical. everyone is blowing out of proportion what is going on. >> i do not think it will hit new york city in a big way. but in certain areas, military bases, i think we're people are in the rural communities. just starting to see a little bit of an increase. it will really hit the people that can least afford it. it is not going to hit the people -- melissa: what is the mechanism? i guess there is a defense spending peace. >> first of all i think it is ludicrous, i think it's a disgrace thattit's even happening. a lot of scare tactics. people are going to experience
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property values fluctuating. it will hurt people that are living paycheck to paycheck they will be afraid of what is going to happen. the president harty said it won't happen overnight. melissa: what do you think? when you look at the headlines coming out of housing, i don't know. i don't know this is going to do it. >> cutting $85 billion out of the budget, $3.6 trillion budget, that it will have that much downward pressure on the housing market right now. the housing market needs stronger economic growth. 2% maximum, that is what is suppressing the housing market. the sequestered is showing the united states of america is the only country that reduces spending rather than going up
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this spiral even when we look at this from that point of view, it seems like it could be a good thing. >> well, unfortunately, this is not the right way of doing it. i think we ought to be cutting spending and we all agree on that. but i think that one of the things that we need to do is do it in a smart way. it is an across-the-board cut. cutting the programs that need to be continued and even though it is a slight reduction, that doesn't solve the overall problem. our problem is the national debt. even if a sequester were to go through, our national debt is still going to go up after 10 years and that is a problem for the american people. and alsohere the country will be 10 years from now. a national discussion to take
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place onward we go here. military defense, entitlements, mandatory programs. everything needs to be on the table and i think it's a great idea to get ceos involved. they see the problem. people have to solve a problem. melissa: i think that politicians could be afraid of that. [talking over each other] [talking over each other] >> we realized that their job is to do something. i was there when ronald reagan was president and we only had the house and we got a lot of stuff done. we have a lot of things in social security and it can be done. basically ronald reagan gave democrats cover. people need to have a national discussion. what kind of america are we going to leave our children are not. melissa: do you think the american people understand?
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>> i think that it was more possible to do it then was now. i want to be frank about this. we have to ask the question, is president obama seriously interested in cutting spending at the level that he is saying that we need. i do not believe that he is. i think that he feels that we need to go to the gridlock that we are in right now. because the president will not give on entitlements or spending. his idea is that we have to raise revenue one way or another to pay for the entitlement commitment that we have made over the past 30 years. melissa: what does that mean to the average person just to bring it back to the person that has hurt all this nonsense? >> i do a radio show every week and people calling about this. you confuse people. you have all these things that are important information, scare
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tactics. melissa: doesn't paralyze them? do they shut it out? >> i think because of so much that has gone on, i think a lot of people are not paying attention to it right at the moment. they have been hearing it for a long time. the people get impacted the most melissa: thank you to all of you. coming up next, it is official. the mchigan governor has declared a state of emergency. can the city be brought back from the abyss. we are goingo talk to a former mayor with his point. and groupon may have been run into the ground, but did the brutally honest tactic get a second wind? piles of money is coming up.
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melissa: moving on to motown commissioner governor rick snyder trying his best to keep from going off the skids. he declared a financial state of emergency in the city, and it looks like the next step will be
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appointing a financial manager to clean up the mess. if this happens, detroit will be the sixth michigan city to have emergency managers. with us now is dennis archer, former the former mayor of detroit. thank you for coming on. >> thank you. melissa: thank you. melissa: is this what the city needs? coming in to make the decision may not. >> quite frankly, i don't think that is going to be necessary. in my view, the mayor of the city of detroit, ran for the office because they love and care about the city. union employees care about the city. what has not occurred since the consent agreement has been entered into between city council, the mayor, and the governor's office. in my view, they have not sat down at the table and had everything before them and
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relve the problems and brought the unions in. melissa: it has been one disaster after another. for whatever reason, they cannot pull it off, it's time for some of us to fix the problem. >> let me make this observation. if they do not sit down within the next 20 and 25 days, with the mayor and members of city council, the lead members of the union, and the finance review team that the governor appointed, which was the obligation to take the measure of appointing or having this, i think within the next 20 or 25
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days, they can solve those problems. what they need to do is show the governor and state that they can fix the immediate cash crisis. and that they have the ability and can deal with the long-term. melissa: but the problem is putting thesepeople in the room, they haven'tcaught up with a plan for cutting spending. >> the reason they haven't done it in my view is because they have been looking at other things to fight about rather than how we solve the problem. now is the time, the city council wants to avoid emergency financial managers. if that's the case, why would this be so bad? melissa: why would it be bad to bring in someone from the outside? >> they cannot come to an agreement. the governor is not going to have any choice but to bring in
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an emergency manager. melissa: but why would that be bad? we were talking about the same problem in washington. maybe what they need is smart ceos to come in and make tough decisions. this financialanager could come in and cut spending. what is wrong with that? >> the city council, the mayor, the unions, they need to work with them and the legacy issues, if they don't come to the table, they will have no ption. if that is the case, i hope someone will understand the culture and what they consider in value, not to just come in and cut in/without an appreciation for the city of
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detroit's. melissa: mayor, thank you for your time. we really appreciate it. coming up on "money", going down in a blaze of glory. the groupon ceo may be ousted, but his epic or by letter will stand the test of time. a top executive says that it may have saved his career, but i'm not buying that for a second. he is here next this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.
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melissa: talk about going out with a bang. the now ex-coupon ceo andrew mason. is known for being quirky and eccentric. but was his groupon for a while just a little too funny for his own good? bruce, you know a thing or two about being creative. to what you think ofhis resignation? >> i think that it was great. i have to tell you that i read it, and i thought it was a piece of genius.
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i wonder if he actually wrote it or a whole team of marketing people wrote it. melissa: oh, come on. i love the way that he said that i'm leaving to spend more time with my family, no, just kidding, i was fired. melissa: that was funny, i thought it was on a spare nothing is more irritating than when people say that they want to spend more time with her family and you know it's bs. but he says if you're wondering why, you haven't been paying attention. it says a stock price has hovered around a quarter of the price and the in the event of last year speak for themselves. he laid out the abysmal failure and the dubious is at best the description. that is what he will be remembered for. he put it right there in the letter.
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>> he will be remembered for building a 3 billion-dollar company. that is what he will be remembered for. melissa: is that the one that google was talking about? >> i would agree that that was a big mistake. not that i have had the opportunity to make this. here is the problem, get it off the table. he mentioned that and he says that i am responsible. when was the last time you heard a ceo apologized, even a parent say that i am responsible. don't blame them. don't blame my people. think of what he's going to get. it was me. i think it's brilliant. melissa: i am trying to et that aside. i don't agree with that. but it comes back to the idea of what he a good ceo or just a
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creative genius who may be thought of an idea, he was very creative. people thought he was quirky and there were other people who love him. but i just don't know that he is a good ceo i think this sort of lays it out. >> but that could be a strategy. you have a classic entrepreneurial, loving to create, love to build, doesn't want to manage it. the board of directors should have realized that. if someone says how is he going to get another job, he doesn't want a job. melissa: what is it, $100 million or something? >> right. melissa: go ahead. >> he is an entrepreneur, he's a builder. he is not a manager. jim collins that the right people are in the right seats.
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melissa: groupon is a great company to rip off. but it seems like there were not a lot of variables. doing a money meter, how likely do you think it is that he is going to make a comeback here of any type. >> this guy is all money. he has all the way. [talking over each other] takamatsu topamax topamax. melissa: you are usually right about these things. bruce, thanks for coming on to disagree with me. it's always a pleasure. here is our money question of the day. can the groupon ceo come back after a letter like this? not to mention all the disaster. so far most of you have said no. but we want to hear from more of you. like us on facebook at facebook.calm. foow me on twitter. up next, this former nba bad boy
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dennis rodman andd kim jong-un buddy up together. one of the most bizarre meetings ever. stay right where you are.
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>> oh russia, you never cease to amaze me. nominated his 15 minute old son to be on the board of russia's flag ship carry your. his reason? boards of state companies in russia have no power. why not nominate a baby? it makes sense to me; right? >> some 15 month olds are smarter than adults any way. he probably can't secure a seat,
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but not surprised. >> how do they do the voting? >> how would they? raise the baby's hand? >> there's someone breaking into the souvenir how, trying to get his way over. >> oh, man, oh, man, how are you? >> is it because i call you dennis? >> would you want to comment on the russian baby? >> move on. >> the ethanol run cars and cars run on coffee. i understand this, but the british made vehicle has a charcoal stove stockedded with coffee grounds. the heat breaks down the grounds releasing hydrogens into the cooling system. i understand that. it makes sense. i car reachedded a record speed of 65 miles per hour. wow. keep in mind, it is all powered by already used coffee grounds.
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thank god they recycle. >> great idea. waste product put to use, doing something basic with it, but creative. >> but what would destroy this is for the government to get involved. guaranteed, it's like wind power. wind power movedded at its own pace, windmills in holland, those in germany, and as soon as the government was involved, it's less efficient to use them now than 20 years ago before we spent tens of billions of dollars on it. >> do you want to drive the car? >> i wouldn't mind. >> what's the smell like? >> if it goes the distance, fast, record miles, 65.5 miles per hour. >> i never go 65. i don't know. that would be -- that would be so frustrating. that's absolutely true.
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have you recovered from the late walk in yet? >> barely, barely. >> we're not embarrassing you, are we? >> no. >> the story is the elevator. >> can i say what i just said? >> we didn't hear it. >> i think imus gets away with more than that. >> well, moving on. girls gone wild goes bankrupt. the risque video filed, how is that possible? saying they need to restructure legal affairs after several disputed court judgments. that is a vague answer, if i ever heard one. wynn resorts trying to hundred dollar down girls gone wild francis, joe francis, for not paying. i would not want him hunting me. sounds dangerous. a coincidence or what do you think? >> he's been after him for five years, back and forth and lawsuit and money. ridiculous nonsense at the time of spring break, going after the pride and joy, his company. >> you can use the word "sleaze
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ball"; can't you? that one fits. i've got a girl who is 20 years old. when you have a 20-year-old girl, you're worried about creeps. you want creeps like this to stay as far away from any civilized nation as possible. >> yeah. >> i'm okay with it. >> support the hunting down the joe francis? >> hunting word is a dangerous phrase to use too. he's got friends, connected friends. >> that was theimplication, but i was not going to say it, you did. >> i said "connected," that can mean a lot of things. >> one thing for dennis rodman to make a jaunt over to north korea, but this tops it all off sitting down with the dictator at t basketball game. rodman publicly said that they would be friends for life. the u.s. state department is not commenting, but what do you think about this? he went on to say he's a great guy. his people love him. everybody we met loves him. i mean, what do you think,


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